The National Bank for Development (NBD), Bank Audi and Banque Misr are currently inviting other banks to contribute to the sharia-compliant syndicated loan worth EGP 1.2 billion which they arranged for Al-Nouran Sugar Company.
The loan arrangers told Islamic banks and commercial banks having Islamic banking licenses to contribute to the loan before signing the term sheet, which was postponed because the Islamic Development Bank (IDB), which acquires a share with value of US$ 25 million in Al-Nouran Sugar Company, was delayed in approving the term sheet, sources said.
The International Company for Leasing (Incolease) and Segolease study to contribute with a share ranging from 10% to 15% to the loan through financing the purchasing of machines for the factory.
The 8 to 10-year syndicated loan will finance the establishment of a sugar factory in Salhia City in Sharkia governorate. The volume of the project’s investment cost is EGP 1.9 billion. The factory will start production after three years. The factory‘s estimated production capacity is 250 thousand tons annually.
Sources expected the loan arrangers to sign the term sheet in the next few days after receiving IDB’s approval.
Al-Nouran Sugar Company received the Industrial Development Authority’s approval over the establishment of a factory in Salhia City in Sharkia Governorate in the third quarter of 2010.
It is worth mentioning that Al-Nouran Holding Company is an importer, exporter, marketer and distributor of goods; mainly raw materials and white sugar.
Egypt’s total volume of sugar production is 1.7 million tons, while the volume of consumption is 2.7 million tons, meaning that Egypt imports one million ton of sugar, according to a study prepared by Industrial Development Authority.
